New Landlord Notified of Rent Overcharge Liability After Foreclosure

(Decision submitted by Seth A. Miller of the Manhattan law firm of Jeffrey S. Ween & Associates, attorneys for the tenant.) Tenants filed an overcharge complaint, and the DHCR upheld their claim, awarding triple damages. Landlord had defaulted on its mortgage without paying the overcharges. When the holder of landlord's mortgage asked the court to arrange a foreclosure sale, tenants asked the court to notify all prospective buyers that the overcharges hadn't been refunded. The court agreed with tenants. New landlord can be held responsible for overcharges collected by a prior landlord if new landlord knows the overcharges haven't been refunded when it buys the building in a foreclosure sale.

Gravante v. Gennaro Lombardi Corp. et al.: Index No. 15666/86 (11/18/94) (Sup. Ct. NY; Wilk, J) [2-page document]